Lululemon Athletica (LULU) suffered a steep 17.38% drop last Friday. Investors fled the stock after the firm posted second-quarter results that included slashing its full-year outlook.
Lululemon reported a 3.2% drop in revenue Y/Y, to $2.42 billion. It earned $2.92 a share (GAAP). For Q3, the firm set a net revenue target in the range of $2.29 - $2.32 billion. This is below the $2.53 billion consensus. The 10-11% revenue decline is startling. For 2026, net revenue of $10.35 to $10.5 billion is a 5%-7% drop.
LULU stock’s plunge is not unique in the industry. Nike (NKE) failed to grow using a direct-to-sales model. Additionally, global sales are under pressure for athletic leisure products amid rising total inflation in the last few years.
Fair Isaac (FICO) lost 16.68% to close at $932.26, not far from its 52-week low. Bill Pulte ordered Fannie and Freddie to approve VantageScore for all of its lenders. The competing scoring system ends FICO’s monopoly and pricing power in mortgage originations.
FICO stock traded at over $2,400 in 2024. The stock has more downside ahead.
Software firm Autodesk (ADSK) lost 8.3% last Friday to close at $217.90. Investors rotated into SanDisk (ADSK), which gained 17.2% in the week, and Micron (MU), up 8.85%. They sold software companies, sending ADSK stock lower.
